How to get out of Credit Card Debt?
It is almost too easy to overspend on your purchases, miss your minimum card payment and accumulate credit card debt. So what should you do when something like this happens?
#1 Notify Your Bank
Banks normally have a set due date for each account. Clients are required to pay on time before the due date to avoid late interest fees. If you are supposed to pay on the 30th of the month and you are sure that you will not be able to meet the deadline to settle the payment, you can immediately call your bank and request for a due date extension. Some banks allow such type of extension especially for people with a good credit record, or if they see that the late payment is not a usual occurrence.
Letting your bill go unpaid can land you in major credit card debt due to interest charges that pile up every month. A tactful negotiation can go a long way if you call your bank and explain the situation for your unable to meet the credit card payment deadline.
#2 Track Your Spending
Try to list the stuff you buy on a daily basis by creating a expenditure spreadsheet that shows where your money goes. It’s easy to lose track of spending (especially when the sales season comes around). However, by being disciplined with spending, and diligent tracking, you will be able to identify your ideal spending patterns, and what you can save on in the long run.
#3 Come Up with a Monthly Budget to Pay your Credit Card Debt
Just because you have a credit card, it doesn’t mean that you go on a shopping spree every month. Discipline yourself by creating a monthly budget and stick to it every month. Allot a budget for leisure or travel or the occasional splurge but make sure that you don’t exceed your monthly budget consistently. Spending frivolously with your card can land you in a huge credit card debt that are difficult to repay.
That concludes our 3 easy action steps when you fail to meet your credit card payments, this will help you achieve a greener financial health, definitely.
Check out some useful pointers on managing your credit card usage.